In an online news conference, organizers said the Olympics will cost $15.4 billion to stage. This is up from $12.6 billion in last year’s budget. The added $2.8 billion is the cost of the one-year delay. Expenses come from renegotiating contracts and measures to combat the COVID-19 pandemic.
OCOG and Other Entities Budget
Ever since the historic decision of the postponement of the Games due to the COVID-19 pandemic, all possible optimisation and streamlining measures aimed at simplifying the operation of the Games have been discussed and progressed in cooperation with the IOC and IPC. The version five budget reflects the reduction of expenses arising from these simplification measures. This version constitutes an update of the OCOG budget version four announced in December 2019, based on the agreed allocation of additional costs due to the Covid-19 pandemic for the Games between Tokyo 2020, the Tokyo Metropolitan Government and the Government of Japan that was announced on 4 December 2020.
Compared with the version four OCOG budget, total expenses have increased by USD 0.9 billion ―including USD 0.3 billion for Paralympic expenses―to a total of USD 6.7 billion.
The OCOG budget, which already includes a significant contribution from the IOC, foresees revenues increasing by USD 0.7 billion, which will help cover the additional expenditures arising from the postponement of the Games. A further USD 0.1 billion of additional expenditures, if they cannot be covered by Tokyo 2020, will be met by the Tokyo Metropolitan Government.
The OCOG budget includes USD 1.2 billion of temporary and overlay facility expenditures, an increase of USD 0.3 billion over the version four budget, operational expenditures of USD 1.6 billion, an increase of USD 0.4 billion, and general affairs and communication expenditures of USD 0.8 billion, an increase of USD 0.2 billion.
We will continue to work closely with the IOC, IPC, the Tokyo Metropolitan Government, the Government of Japan and all other relevant organisations to prepare for a safe and secure Games, allowing the city of Tokyo and the entire nation to benefit from the hosting the Olympic and Paralympic Games. We aim to continue seeking further efficiencies and expenditure reductions, on top of the USD 280 million announced in October.
OCOG Budget (V5 Budget)
Revenue
| Items | Amount |
|---|---|
| IOC Contribution | USD 0.8b |
| TOP Sponsorship | USD 0.5b |
| Local Sponsorship | USD 3.3b |
| Licensing | USD 0.1b |
| Ticket sales | USD 0.8b |
| Others | USD 0.3b |
| Expected additional revenue | USD 0.7b |
| Adjustment account(note1) | USD 0.1b |
| Total | USD 6.7b |
Expenditure
| Items | Amount |
|---|---|
| Temporary/Overlay | USD 1.2b |
| Energy | USD 0.2b |
| Venue-related budget | USD 1.4b |
| Transport | USD 0.4b |
| Security | USD 0.3b |
| Technology | USD 0.7b |
| Games operation | USD 1.6b |
| General affairs/Communication | USD 0.8b |
| Marketing | USD 1.3b |
| Others | USD 0.2b |
| Service budget | USD 5.3b |
| Total | USD 6.7b |
* Unit: billion USD / 1 USD = 107 JPY
Note 1 : This represents the expenditures that cannot currently be covered by means of additional cost reduction and revenue growth and will therefore be borne by the Tokyo Metropolitan Government.
Note 2: Some totals may not match the sum of their component figures due to rounding.
Reference : OCOG and Other Entities Budget (V5 Budget)
| Items | OCOG | Other entities | Total |
|---|---|---|---|
| Permanent | — | USD 3.2b | USD 3.2b |
| Temporary/Overlay | USD 1.2b | USD 2.4b | USD 3.6b |
| Energy | USD 0.2b | USD 0.4b | USD 0.7b |
| Venue-related budget | USD 1.4b | USD 6.1b | USD 7.5b |
| Transport | USD 0.4b | USD 0.3b | USD 0.8b |
| Security | USD 0.3b | USD 0.5b | USD 0.9b |
| Technology | USD 0.7b | USD 0.4b | USD 1.1b |
| Games operation | USD 1.6b | USD 0.2b | USD 1.8b |
| General affairs/Communication | USD 0.8b | USD 0b | USD 0.8b |
| Marketing | USD 1.3b | USD 0b | USD 1.3b |
| Others | USD 0.2b | USD 0b | USD 0.2b |
| Service budget | USD 5.3b | USD 1.5b | USD 6.8b |
| Costs for COVID-19 countermeasures | — | USD 0.9b | USD 0.9b |
| Discretionary expenses | — | USD 0.1b | USD 0.1b |
| Total | USD 6.7b | USD 8.6b | USD 15.4b |
* Unit: billion USD / 1 USD = 107 JPY
Note 1: If there are any unexpected occurrences, all the parties will cover them according to each division of roles.
Note 2: Some totals may not match the sum of their component figures due to rounding.
Reference : Current status of the division of roles (V5 Budget)
| Items | OCOG | TMG | Government of Japan | Total |
|---|---|---|---|---|
| Permanent | — | 2.1b | 1.1b | 3.2b |
| Temporary/Overlay | 1.2b | 2.3b | 0.3b | 5.4b |
| Energy | 0.2b | 0.4b | ||
| Technology | 0.7b | 0.4b | ||
| Venue-related budget | 2.2b （0.6b） | 5.1b （0.3b） | 1.4b （0.3b） | 8.7b （1.1b） |
| Transport | 0.4b | 0.3b | 0.1b | 5.7b |
| Security | 0.3b | 0.5b | ||
| Games operation | 1.6b | 0.1b | ||
| General affairs/Communication | 0.8b | 0b | ||
| Marketing | 1.3b | 0b | ||
| Others | 0.2b | 0b | ||
| Service budget | 4.6b （0.3b） | 1.0b （0.1b） | 0.1b （0.1b） | 5.7b （0.6b） |
| Costs for COVID-19 countermeasures | — | 0.4b | 0.5b | 0.9b |
| Discretionary expenses | — | 0.1b | — | 0.1b |
| Total | 6.7b （0.8b） | 6.6b （0.4b） | 2.1b （0.4b） | 15.4b （1.7b） |
